(Preferred stock valuation) Davis Plc. has in its share capital 100,000, $10 preferred shares paying 12 percent dividends. They are currently trading at $40 per share. a. Calculate the cost of...

(Preferred stock valuation) Davis Plc. has in its share capital 100,000, $10 preferred shares paying 12 percent dividends. They are currently trading at $40 per share.

a. Calculate the cost of preference shares.
b. Calculate the price of Davis Plc. preference shares if the cost of preferred shares is 15 percent.

Please answer all the parts of the questions ( a & b ).